A new program designed to keep prospering District businesses from fleeing to the lures of suburbia won its first victory yesterday when Super concrete Co. and city officials announced a $1.25 million loan package to enable the firm to develop new facilities in Northeast.
The package, put together by the city government's Office of Business and Economic Development Council, enables Super Concrete to consolidate two facilities into a new location on Gallatin St. NE.
"Super Concrete is a healthy, growing business," said Mayor Marion Barry during ceremonies at the site. "I understand that their sales were at $9.5 million last year, a big jump from the year before. This company would be welcomed anywhere."
Super had been located along the Georgetown waterfront and in northeast, but has been displaced from the locations. In looking for a new site, Super officials were apparently on the verge of moving to Prince George's County, until the loan package was put together.
The new package consists of a $625,000 25-year mortgage from Ridge National Bank, a $500,000 25-year second mortgage from the Small Business Administration, and $125,000 in community development money originally from the U.S. Department of Housing and Urban Development.
The District government has been eager to develop a program to cut the flight of businesses to the Maryland and Virginia suburbs and the National Development Council, a non-profit national organization, has been involved in similar work for the last six years.
The council's mission is to assist small and medium-sized urban businesses in obtaining federal assistance and a variety of training services. Washington is one 33 pilot cities in the program, but the Super Concrete package is the first project the council has put together here.
Business in that category have a particularly difficult time finding financing for plans to expand within urban centers, since the amount of funds needed frequently falls between the short term loans that banks make available and the larger loans that insurance companies, for instance, provide businesses. CAPTION: Picture, Business To Stay, Mayor Marion Barry speaks yesterday at ceremonies marking the announcement that Super Concrete Co. will not move from the District to Prince George's County after city officials worked out a $1.25 million loan. By Larry Morris -- The Washington Post